A few years ago, I started pulling together my favorite Trading Rules & Aphorisms. It turned out to be a popular post, and so we added “Rules” as a new category. Since then, I have taken to updating this sporadically (see this).

We are overdue for an update.  What follows are the smartest and most insightful perspectives from traders, analysts, economists and investors on what to do — and what not to do — when it comes to markets that have been previously published on TBP.

Here is the latest update:

Trading & Investing Rules, Aphorisms & Books

Jeremy Grantham: Investment Lessons Learned Over 47 Years (Mistakes Were Made)

Sir John Templeton 16 Rules For Investment Success

Bernard Baruch: 10 Rules of Investing

10 Lessons from 1987 Market Crash

Livermores Seven Trading Lessons

Bob Farrell’s 10 Rules for Investing

James Montier’s Seven Immutable Laws of Investing

Byron Wien’s 20 Rules of Investing & Life

Richard Rhodes’ 12 Trading Rules

John Murphy’s Ten Laws of Technical Trading

Six Rules of Michael Steinhardt

Warren Buffett Favorite Investing Quotes

Nassim Taleb’s 5 Rules of Volatility

Morgan Housel’s 9 Financial Rules

David Merkel: The Eight Rules of My Investing

Art Huprich’s Market Truisms and Axioms

DENNIS GARTMAN’S NOT-SO-SIMPLE RULES OF TRADING

Rosie’s Rules to Remember

Louis Ehrenkrantz’ 7 Golden Rules for Investing

In Defense of the “Old Always” (Montier)

Lessons from Merrill Lynch

Gerald Loeb’s Market Wisdom

Lessons Learned from 37 Years of Futures Trading

Richard Russell’s The Power of Compounding

Doug Kass: 10 Laws of Stock Market Bubbles

The golden rules of investing (India)

25 Common Sense Money Tips

Dan Bunting’s Laws of Investing

Cassandra’s (Not so) Golden Rules About Investing (& Not Investing)

These are more general rules, not necessarily about investing:

50 Cognitive Distortions

Todd Harrison’s 12 Cognitive Biases That Endanger Investors

Lefsetz’s Business Rules

If you have any suggestions for any good lists of rules I may have missed, please link to them in comments. If they are worthy, they will get added to the list.

My own trading rules and favorite Trading Books are after the jump

My (Ritholtz) own rules

12 Rules of Goldbuggery

Ritholtz’s Dozen Rules for Investors

Lessons from 2012 Election

10 Ways to Simplify Your Investing

10 Errors and Checklist for Investors

Lessons the Guys Who Wrote Dow 36,000 Should Have Learned

Rules for Shorting

15 Inviolable Rules for Dealing with Wall Street

10 Psychological, Valuation, Adapative Investing Rules

The Zen of Trading

 

All of the books ever mentioned on The Big Picture can be found by clicking the Bookshelf link. But you can see our major overviews on investing related books in these lists:

10 Behavioral Economics/Psychology Books for Investors

Reading Is Fundamental

More Reading Ideas

Newbies: Anyone who is interested in finance as a career, I suggest these two books as a starter — they cover trading and markets generally:

Maggie Mahar: Bull: A History of the Boom and Bust, 1982-2004Bull: A History of the Boom and Bust, 1982-2004, What drove the Breakneck Market — and What Every Investor Needs to Know About Financial Cycles by Maggie Mahar

The best book about the 1982-2000 market, bar none. There are a surprising number of lessons buried in these pages that will reward the careful reader. I found it both fascinating and informative.

Jack D. Schwager: Stock Market Wizards : Interviews with America's Top Stock TradersStock Market Wizards : Interviews with America’s Top Stock Traders by Jack D. Schwager

Schwager interviewed market legends at the height of their success. What makes the book so worthwhile are the consistent themes that evolve from currency traders, mutual fund managers, commodities traders, hedge fund managers. Regardless of what is being traded, there are related motifs that run throughout. What results is not a “How to trade” book; instead, it is a book about “How to think about trading.”

If you want some book ideas for Technicals, have a go at these:

Technical Analysis of the Financial Markets by John J. Murphy.
Technical Analysis from A to Z by Steven B. Achelis;
Encyclopedia of Chart Patterns by Thomas N. Bulkowski;
Japanese Candlestick Charting Techniques by Steve Nison;

Don’t think you need a full reference library; any pair of these books should do.

I am working on a few new book lists, and they will get published over time.

Category: Investing, Rules, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Investing/Trading Rules, Aphorisms & Books (Summer 2014)”

  1. [...] Investing/Trading Rules, Aphorisms & Books (Summer 2014) [...]

  2. Publius says:

    I’m going with Byron Wien’s Rule #20. So far, so good!

  3. J. Wenger says:

    Here are 10 principles of personal finance and safe investing (http://www.invest-safely.com/principles-of-investing.html). The list might be too basic for most TBP readers, but hopefully it helps a few.

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